Latest News on Dividend and Preferred Stocks

mREIT Chimera Investment Corp Sells a Nice Preferred Issue

Longtime readers know that we are not big investors in mREITs (mortgage REITs), in particular the common shares.  Additionally we have seldom owned the preferred shares of the mREITs, but that has more to do with our aversion to perpetual preferreds than anything else. Chimera Investment Corp, (NYSE-CIM) has sold a fixed-to-floating rate preferred, that […]

We Love It and You Might Too

Ok, we’ll admit it right up front.  Sometimes we are lazy and don’t check our investments for days on end.  There are also months where we might make only 1 buy or 1 sell of a security.  We have written before that it is our goal to NOT trade unless we have a real reason […]

The Coming Interest Rate Hike

We thought it was time to revisit the topic of the coming interest rate hike.  Certainly it is likely there is a rate hike coming, but when it will happen no one knows for sure. Earlier this week we watched Chair Yellen testify to congress and at first it seemed that she wanted to raise […]

Energy Retailer Just Energy Corp. Sells a Juicy Fix-to-Floating Issue

Canadian energy reseller Just Energy Corp. (NYSE:JE) has sold a new 4 million share fixed-to-floating rate preferred offering with an initial fixed coupon of 8.50%. Just Energy is a reseller of both electricity and natural gas in most of Canada and in 14 U.S. states.  JE does not produce energy, but simply is the seller […]

Adding a mREIT to 2 Portfolios

In what we believe to be a 1st for the model portfolios we have added shares of mREIT New Residential Investment Corp (NYSE:NRZ) to 2 of the models.  This decision was made as shares traded sharply lower as the company did a stock offering of 50,000,000 shares.  We should also note that we follow many investing […]

Interest Rates Flat Through January

January has been a reasonably good month for income investors as the 10 year treasury ended the month at the same place it started, 2.45%.  Even though interest rates remained flat the average price of a preferred share or baby bond continued to climb from December prices.  The average share ended the month at $25.68 […]

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BDC Hercules Capital Calls 7% Baby Bonds

Quality business development company Hercules Capital (NYSE:HTGC) has called for early redemption of their 7% baby bonds (NYSE:HTGZ and HTGY) effective 2/24/2017.  These 2 issues became callable on 4/30/2015 and 9/30/2015 respectively and had maturity dates in 2019.  The company has sold a large ($230 million) convertible issue with a 4.375% coupon to fund the […]

Morgan Stanley Sells a Billion Dollar Fixed to Floating Rate Preferred

Securities firm Morgan Stanley has sold a giant fixed-to-floating rate preferred stock issue.  The offering is 40,000,000 shares and comes with an initial fixed rate of 5.85%. From our perspective this is a stingy coupon from an issuer that is less than investment grade.  It is not just the initial coupon that is stingy, but […]

Medley LLC Baby Bonds Now Trading

The new issue of baby bonds sold buy Medley LLC which we wrote about here have begun trading today under the ticker symbol MDLQ. This issue has a maturity date in 2024 and a fairly tasty coupon of 7.25%.  Shares are now trading in the $24.70-$24.90 range. We have bought some of this issue for our […]

Don’t Be Afraid to Own Preferreds When They are Call Eligible

As all experienced preferred stock owners know most preferred’s (and baby bonds) become eligible to be called after 5 years, although there are some fixed to floating rate issues that don’t become call eligible for 10 years.  The call (or redemption) is at the option of the issuer. This feature doesn’t generally work in the […]

Pennsylvania Real Estate Investment Trust Sells a Preferred Issue

Eastern United States shopping mall owner Pennsylvania Real Estate Investment Trust (NYSE:PEI) has sold a large preferred stock offering. The offering is composed of 6,000,000 shares of $25 shares with an over allotment available to the underwriters of 900,000 shares (if demand is high enough the underwriter can sell these over allotment shares).  The company […]

Medley LLC to Sell a Baby Bond Issue

Medley LLC, the operating company of Medley Management (NYSE:MDLY) will be selling a baby bond issue with a moderate length of time until maturity.  These $25 baby bonds have a maturity date of January 30, 2024 with a coupon of 7.25%. There is an optional call date starting on January 30th, 2020 where the bonds […]